NU Online News Service, May 15, 8:37 a.m.EDT

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WASHINGTON–The Treasury Department said last night ithad approved Allstate Corporation and five other insurers to gettaxpayer rescue money under its multibillion-dollar CapitalPurchase Program.

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Other carriers okayed for government assistance were HartfordInsurance Group, Prudential Financial, the Principal FinancialGroup, Lincoln National and Ameriprise Financial Inc.

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The Hartford confirmed that it has received preliminary approvalto receive $3.4 billion under the program, but all others eitherdeclined comment or did not return phone calls seeking comment.

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"We are pleased that we received preliminary approval toparticipate in Treasury's Capital Purchase Program," said RamaniAyer, chairman and chief executive officer of the Hartford.

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"Applying for participation in the CPP was a prudent step forThe Hartford, particularly given the continued economicuncertainty," Mr. Ayer said. "These funds would further fortify ourcapital resources and provide us with additional financialflexibility during one of the most volatile market climates in ournation's history," he added.

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All terms of the actual Treasury investment in The Hartford aresubject to final negotiations and approval, he added.

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Andrew Williams, a Treasury spokesman, said those approved "metthe requirements for the CPP because of their bank holding companystatus and each applied for CPP capital investments in time to meeta government deadline."

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Mr. Williams added, "These companies are among the hundreds offinancial institutions in the CPP pipeline that will be reviewedand funded as appropriate on a
rolling basis."

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He also said this is an existing program, not a new program.

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Several other insurance companies that had applied for aiddropped out, including the Phoenix Companies and ProtectiveLife.

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Genworth was turned down because its application to restructureas a bank holding company and therefore become eligible was notapproved before the deadline.

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Frank Keating, president and chief executive officer of theAmerican Council of Life Insurers, said the trade group "welcomed"the Treasury Department's decision.

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"Treasury's reported decision reflects the important role thelife insurance industry plays in the lives of 75 million Americanfamilies, in the financial services system and in the nationaleconomy," he said.

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"By extending funds to certain insurers, Treasury is taking theright step toward helping restore lending and liquidity to themarketplace," he said.

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"We appreciate the significant time and attention Treasury hasand continues to put into this process," he added.

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The Financial Services Roundtable, whose members include severalinsurers, voiced support for the Treasury decision. The CPP programwas authorized by Congress last September as part of the TroubledAsset Relief Program.

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"The TARP program is working and it should be expanded toinclude as many facets of the financial services industry aspossible," said Steve Bartlett, president and CEO of theRoundtable.

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"By including life insurers in TARP, it helps ensure therecovery effort is broad and covers all aspects of the economy," hesaid.

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